Nowhere to Hide

Jon Little, Partner

Barely a month passes without some new piece of research being published with the headline ‘Most active managers underperform.’ Even where this research identifies a subset of managers who do outperform the subtext is that this is due either to luck or the law of averages rather than any innate skill or inbuilt advantage. So, against this back-drop, if it is true that most managers underperform and the factors determining the minority of managers who do perform are largely random it is not hard to see why many clients are moving towards higher levels of passive investment.